Understanding Monaco’s Rental Laws in 2025: Comparing Loi n°1235 and Loi n°887
2025-04-14
Understanding Monaco’s Rental Laws in 2025: Loi n°1235 vs Loi n°887
Navigating Monaco’s real estate market means understanding its distinct property laws. In 2025, two important frameworks—Loi n°1235 and Loi n°887—govern the rental and occupation of certain residential properties in Monaco. Here’s an updated look at their key differences, obligations, and opportunities.
Rental Obligations and Property Use
|
Criteria |
Loi n°1235 |
Loi n°887 |
|
Obligation to Rent or Occupy |
Yes |
No (but declaration of vacancy required per Law n°4621, art. 2) |
|
Allowed Use of Property |
Residential or mixed-use only |
Residential, mixed-use, or for liberal professions |
Rent, Duration, and Lease Terms
|
Criteria |
Loi n°1235 |
Loi n°887 |
|
Rent Setting |
Regulated by the government, annual increases are controlled |
Freely set by the landlord, including annual increase |
|
Lease Duration |
6 years, automatic renewal |
6 years, not automatically renewed |
|
Lease Renewal |
Renewal by right under same conditions |
New terms can be negotiated |
|
Termination by Tenant |
At any time, with 3 months’ notice |
Annually, with 3 months’ notice |
|
Termination by Landlord |
Only with 6 months’ notice for personal use (right of repossession) |
At the 6-year mark with 3 months’ notice, no justification needed |
Tenant Selection and Priority
|
Criteria |
Loi n°1235 |
Loi n°887 |
|
Tenant Choice |
Based on a priority list of eligible tenants |
Landlord may choose freely among eligible tenants |
Preemption Rights
Both laws include State preemption rights, meaning the government has first refusal to purchase a property. If declined, the tenant then has secondary preemptive rights under both frameworks.
What This Means for Buyers and Investors
At Monaco Properties, we guide clients through Monaco’s regulated property laws to ensure well-informed decisions. Understanding whether a property falls under Loi n°1235 or Loi n°887 is critical for long-term planning, especially for those interested in buy-to-let investments or purchasing with future personal use in mind.
Looking to invest or lease property in Monaco?
Let our expert team at Monaco Properties help you identify the best opportunities within the legal framework.
Contact us today for personalised guidance:
- Phone +377 97 97 33 97
- Whatsapp: +33 6 40 62 65 76
- Email: info@mpmonaco.com
